Himalayan News Service

Guwahati, January 13:

Lack of infrastructure at the customs administration in India’s northeast and a poor transport system are seriously hampering the country’s trade prospects with neighbouring countries.

“The inadequate transport and transit system in the northeastern region and between India and its neighbours has led to high transaction costs,” says D D Ingty, the commissioner of customs (preventive). “The transport costs of export and import items in this region and Bangladesh are far higher than in other parts of the world. Thus a large part of the trade is taking place informally in order to curb costs,” Ingty said.

“Further, lack of infrastructure in the Land Customs Stations (LCS), the customs administration, aggravates the smooth transaction of formal trade.” According to the official, many of the LCSs in the northeast do not have basic amenities like potable water, electricity and staff quarters.

“Road connectivity in this region continues to be skimpy due to missing links and poor road conditions, most of which are still fair-weather roads. Condition of roads leading to international borders from production centres is a major hurdle to international trade,” says Ingty. “Roads need to be straightened and broadened so that maximum transportation can be done in a minimum time. These roads can be constructed under a pay for itself scheme by collecting toll-tax from users.”

The 103-km-long Shilong-Guwahati road can be reduced to 60 km, he says. “Calculating an average traffic of 10,000 transport vehicles (both ways) every day, Rs 500 (IRs) per vehicle will generate Rs 1.83 billion per year, not to speak of fuel savings in the bargain,” Ingty explains.

“Since Bangladesh and India are signatories to the South Asian Free Trade Area (SAFTA) accord, Bangladesh must extend transit facility to goods from the northeast to our mainland and vice versa through land.”

Today Bangladesh is trading with Nepal through India under the Transportation of Goods (Through Foreign Territory) Regulation Act of India, 1965. Bangladesh has allowed transit facility to India through their river routes under the Protocol on Inland Water Transit and Trade.

“The declared bus routes of Agartala-Dhaka and Dhaka-Kolkata already in use can be used for trade transportation.” Ingty says Inter-zonal rail connectivity also remains insufficient and this mode of transportation is yet to reach any of the LCSs of the northeast.